Interaction between apparent and implied authority in the implementation of sustainable business relationships

Abstract

Purpose – to reveal the problems of apparent and implied authority in the context of sustainable business relationships. Research methodology – the research is conducted from a comparative perspective, explaining the problems of apparent and implied authority in selected jurisdictions. Findings – authors conclude that apparent authority is the exclusive remedy available only where a link has been established between the circumstances of the principal and the reasonable belief of the third party. Implied authority cannot be equated with apparent authority, although case law often does not distinguish between these two categories. Research limitations – due to limited scope, this article does not address the ratification of unauthorised agent’s actions and the liability of falsus procurator. Practical implications – the research reveals that implied authority derives from the factual circumstances in which the agent acts and must be regarded as part of the actual authority, which presupposes that, unlike in the case of apparent authority, the implied representation does not qualify as one of the cases of unauthorised agency. Originality/Value – the significance of this study is linked to the development of reasonable rules for the application of apparent and implied authority in order to safeguard the legitimate interests of all persons involved in this complex relationship.